diff --git a/src/compiler/emitter.ts b/src/compiler/emitter.ts
index ab6279f99d6..1e1c57f5700 100644
--- a/src/compiler/emitter.ts
+++ b/src/compiler/emitter.ts
@@ -3231,21 +3231,27 @@ module ts {
         }
 
         if (targetSourceFile === undefined) {
+            // No targetSourceFile is specified (e.g. calling emitter from batch compiler)
             forEach(program.getSourceFiles(), sourceFile => {
                 if (shouldEmitToOwnFile(sourceFile, compilerOptions)) {
                     var jsFilePath = getOwnEmitOutputFilePath(sourceFile, ".js");
                     emitFile(jsFilePath, sourceFile);
                 }
             });
-        }
-        else {
-            // Emit only one file specified in targetFilename. This is mainly used in compilerOnSave feature
-            var jsFilePath = getOwnEmitOutputFilePath(targetSourceFile, ".js");
-            emitFile(jsFilePath, targetSourceFile);
-        }
 
-        if (compilerOptions.out) {
-            emitFile(compilerOptions.out);
+            if (compilerOptions.out) {
+                emitFile(compilerOptions.out);
+            }
+        } else {
+            // targetSourceFile is specified (e.g calling emitter from language service)
+            if (shouldEmitToOwnFile(targetSourceFile, compilerOptions)) {
+                // If shouldEmitToOwnFile is true or targetSourceFile is an external module file, then emit targetSourceFile in its own output file
+                var jsFilePath = getOwnEmitOutputFilePath(targetSourceFile, ".js");
+                emitFile(jsFilePath, targetSourceFile);
+            } else {
+                // If shouldEmitToOwnFile is false, then emit all, non-external-module file, into one single output file
+                emitFile(compilerOptions.out);
+            }
         }
        
         // Sort and make the unique list of diagnostics
diff --git a/src/services/services.ts b/src/services/services.ts
index e4d28f4700f..4709f109f67 100644
--- a/src/services/services.ts
+++ b/src/services/services.ts
@@ -3882,7 +3882,8 @@ module ts {
             filename = TypeScript.switchToForwardSlashes(filename);
             var compilerOptions = program.getCompilerOptions();
             var targetSourceFile = program.getSourceFile(filename);  // Current selected file to be output
-            var emitToSingleFile = ts.shouldEmitToOwnFile(targetSourceFile, compilerOptions);
+            // If --out flag is not specified, shouldEmitToOwnFile is true. Otherwise shouldEmitToOwnFile is false.
+            var shouldEmitToOwnFile = ts.shouldEmitToOwnFile(targetSourceFile, compilerOptions);
             var emitDeclaration = compilerOptions.declaration;
             var emitOutput: EmitOutput = {
                 outputFiles: [],
@@ -3903,7 +3904,7 @@ module ts {
             var syntacticDiagnostics: Diagnostic[] = [];
             var containSyntacticErrors = false;
 
-            if (emitToSingleFile) {
+            if (shouldEmitToOwnFile) {
                 // Check only the file we want to emit
                 containSyntacticErrors = containErrors(program.getDiagnostics(targetSourceFile));
             } else {
@@ -3930,7 +3931,7 @@ module ts {
             // Perform semantic and force a type check before emit to ensure that all symbols are updated
             // EmitFiles will report if there is an error from TypeChecker and Emitter
             // Depend whether we will have to emit into a single file or not either emit only selected file in the project, emit all files into a single file
-            var emitFilesResult = emitToSingleFile ? getFullTypeCheckChecker().emitFiles(targetSourceFile) : getFullTypeCheckChecker().emitFiles();
+            var emitFilesResult = getFullTypeCheckChecker().emitFiles(targetSourceFile);
             emitOutput.emitOutputStatus = emitFilesResult.emitResultStatus;
 
             // Reset writer back to undefined to make sure that we produce an error message if CompilerHost.writeFile method is called when we are not in getEmitOutput
diff --git a/tests/baselines/reference/getEmitOutputExternalModule.baseline b/tests/baselines/reference/getEmitOutputExternalModule.baseline
new file mode 100644
index 00000000000..b5e670c5fd7
--- /dev/null
+++ b/tests/baselines/reference/getEmitOutputExternalModule.baseline
@@ -0,0 +1,9 @@
+EmitOutputStatus : Succeeded
+Filename : declSingleFile.js
+var x = 5;
+var Bar = (function () {
+    function Bar() {
+    }
+    return Bar;
+})();
+
diff --git a/tests/baselines/reference/getEmitOutputExternalModule2.baseline b/tests/baselines/reference/getEmitOutputExternalModule2.baseline
new file mode 100644
index 00000000000..5c03a092257
--- /dev/null
+++ b/tests/baselines/reference/getEmitOutputExternalModule2.baseline
@@ -0,0 +1,15 @@
+EmitOutputStatus : JSGeneratedWithSemanticErrors
+Filename : declSingleFile.js
+var x = 5;
+var Bar = (function () {
+    function Bar() {
+    }
+    return Bar;
+})();
+var x = "world";
+var Bar2 = (function () {
+    function Bar2() {
+    }
+    return Bar2;
+})();
+
diff --git a/tests/baselines/reference/getEmitOutputSingleFile2.baseline b/tests/baselines/reference/getEmitOutputSingleFile2.baseline
index 77fa6b9acdd..2f5dbe3daf8 100644
--- a/tests/baselines/reference/getEmitOutputSingleFile2.baseline
+++ b/tests/baselines/reference/getEmitOutputSingleFile2.baseline
@@ -5,28 +5,4 @@ exports.bar = "hello world";
 Filename : tests/cases/fourslash/inputFile3.d.ts
 export declare var foo: number;
 export declare var bar: string;
-Filename : declSingleFile.js
-var x = 5;
-var Bar = (function () {
-    function Bar() {
-    }
-    return Bar;
-})();
-var x1 = "hello world";
-var Foo = (function () {
-    function Foo() {
-    }
-    return Foo;
-})();
-Filename : declSingleFile.d.ts
-declare var x: number;
-declare class Bar {
-    x: string;
-    y: number;
-}
-declare var x1: string;
-declare class Foo {
-    x: string;
-    y: number;
-}
 
diff --git a/tests/cases/fourslash/getEmitOutputExternalModule.ts b/tests/cases/fourslash/getEmitOutputExternalModule.ts
new file mode 100644
index 00000000000..ef9fb348c57
--- /dev/null
+++ b/tests/cases/fourslash/getEmitOutputExternalModule.ts
@@ -0,0 +1,19 @@
+/// <reference path="fourslash.ts" />
+
+// @BaselineFile: getEmitOutputExternalModule.baseline
+// @out: declSingleFile.js
+
+// @Filename: inputFile1.ts
+// @emitThisFile: true
+//// var x: number = 5;
+//// class Bar {
+////    x : string;
+////    y : number
+//// }
+
+// @Filename: inputFile2.ts
+//// export module M {
+//// 	class C {c}
+//// }
+
+verify.baselineGetEmitOutput();
\ No newline at end of file
diff --git a/tests/cases/fourslash/getEmitOutputExternalModule2.ts b/tests/cases/fourslash/getEmitOutputExternalModule2.ts
new file mode 100644
index 00000000000..abecc219698
--- /dev/null
+++ b/tests/cases/fourslash/getEmitOutputExternalModule2.ts
@@ -0,0 +1,26 @@
+/// <reference path="fourslash.ts" />
+
+// @BaselineFile: getEmitOutputExternalModule2.baseline
+// @out: declSingleFile.js
+
+// @Filename: inputFile1.ts
+//// var x: number = 5;
+//// class Bar {
+////    x : string;
+////    y : number
+//// }
+
+// @Filename: inputFile2.ts
+// @emitThisFile: true
+//// var x: string = "world";
+//// class Bar2 {
+////    x : string;
+////    y : number
+//// }
+
+// @Filename: inputFile3.ts
+//// export module M {
+//// 	class C {c}
+//// }
+
+verify.baselineGetEmitOutput();
\ No newline at end of file